### Cost Analysis for Consulting Engagements at Daniel's Business Services#### Initial Costs for Incomplete JobsAt the beginning of the month, Daniel’s Business Services had two incomplete consulting engagements (jobs) with costs assigned from previous months:| Job Number | Associate Labor | Applied Overhead ||------------|------------------|------------------|| DBS-32 | $39,320 | ? || DBS-35 | $29,280 | ? |#### Monthly Job Completion and Overhead ApplicationDuring the month, Jobs DBS-32 and DBS-35 were completed but not billed to customers. Additional costs incurred for completion were:- **DBS-32**: $33,900 in associate labor- **DBS-35**: $105,000 in associate laborDuring the same period, a new job, **DBS-36**, began but was not finished. The total direct labor costs for all jobs amounted to $188,200 for the month. Overhead in this context refers to indirect costs such as supplies, copying, printing, and travel expenses for client meetings. Overhead is applied at a rate of 75 percent of associate labor costs, a rate consistent over several months. Actual overhead for the month was $137,700.#### Analysis Requirements1. **Cost Summary for DBS-32 and DBS-35**: Determine the costs of these jobs at (1) the beginning of the month and (2) when completed.2. **Cost Summary for DBS-36**: Determine the cost of this job at the end of the month.3. **Overhead Analysis**: Evaluate the under-applied or over-applied service overhead for the month.#### Detailed CalculationTo complete this question, please enter the answers into the respective tabs below:**Required A: Costs for Jobs DBS-32 and DBS-35**```| Description | DBS-32 | DBS-35 ||-----------------------------|----------------|----------------|| The costs of jobs at the | | || beginning of the month | | || The costs of jobs when | | || completed | | |```**Required B: Cost for Job DBS-36**```* Provide the calculated cost at the end of the month.```**Required C: Overhead Analysis**```* Determine if there was under-applied or

At the beginning of the month, Daniel's Business Services had two incomplete consulting engagements (jobs) that had the following costs assigned from previous months. Job Number DBS-32 DBS-35 Associate Labor $ 39,320 29, 280 Applied Overhead ? ? During the month, Jobs DBS-32 and DBS-35 were completed but not billed to customers. Completion of DBS-32 required an additional $33,900 in associate labor. For DBS-35, an additional $105,000 in associate labor was incurred. During the month, the only new job, DBS-36, was started but not finished. Total direct labor costs for all jobs amounted to $188,200 for the month. Overhead in this company refers to the cost of work that is not directly traced to particular jobs, including supplies, copying, printing, and travel costs to meet with clients. Overhead is applied at a rate of 75 percent of associate labor costs. This rate has not changed for many months. Actual overhead for the month was $137,700. Required: a. What are the costs of Jobs DBS-32 and DBS-35 at (1) the beginning of the month and (2) when completed? b. What is the cost of Job DBS-36 at the end of the month? c. How much was under- or overapplied service overhead for the month?

At the beginning of the month, Daniel's Business Services had two incomplete consulting engagements (jobs) that had the following costs assigned from previous months. Job Number DBS-32 DBS-35 Associate Labor $ 39,320 29, 280 Applied Overhead ? ? During the month, Jobs DBS-32 and DBS-35 were completed but not billed to customers. Completion of DBS-32 required an additional $33,900 in associate labor. For DBS-35, an additional $105,000 in associate labor was incurred. During the month, the only new job, DBS-36, was started but not finished. Total direct labor costs for all jobs amounted to $188,200 for the month. Overhead in this company refers to the cost of work that is not directly traced to particular jobs, including supplies, copying, printing, and travel costs to meet with clients. Overhead is applied at a rate of 75 percent of associate labor costs. This rate has not changed for many months. Actual overhead for the month was $137,700. Required: a. What are the costs of Jobs DBS-32 and DBS-35 at (1) the beginning of the month and (2) when completed? b. What is the cost of Job DBS-36 at the end of the month? c. How much was under- or overapplied service overhead for the month?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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